Bagger Dave's Burger Tavern (BDVB)

[MikeyInTheD]

They sold the franchises without a clear plan of the future. Shareholders were left with no cash and nearly worthless assets.

Many of the smaller restaurants are going to close over the coming years. They cannot operate in this economy without producing profits. Capital is too expensive to borrow and investors aren’t excited by the restaurant stocks so issuing new shares isn’t a great option either. I think we see Dave’s go under. I think Fat Brands is another restaurant stock that goes to zero.

[ErnieBilco]

It's a shame that they really screwed up when they sold the Buffalo Wild Wings franchised that made them a money maker back in the day, but then again even BWW's are disappearing and rebranded as Oak & Stone I think they call it.

The restaurants are all in trouble due to the economy and a lot of them won't make it.

I wouldn't buy any restaurant stocks - the risks are just too high.

[MikeyInTheD]

I think you are correct. There is no value here. They own no real estate, balance sheet is a mess and it’s a failed concept. They are barely operating and have zero uniqueness to their model. No one will notice if this goes away tomorrow. Red Robin has been crushed and they have a national footprint, advertising budget and can spread corporate costs over a much larger restaurant count. Dave isn’t in a position to compete.

[Rave11]

I think you are right. Not enough shares to reverse-split to Nasdaq. Plus, they fail all requirements to be included on the Nasdaq. I think an equity infusion, which would mean significant dilution, is the only way to meet capital requirements and get the share-count high enough to reach a minimum of $1. But I'm sure they'd want to be higher like $3 or $5. And since the cash is pretty close to the long term debt, I feel like enterprise value is a better way to look at it, which a simplistic rounded-off calculation for that is $2.5M. And at 40% ownership, that's about $6.25M valuation at 6 cents. So I think the true cost of each store is $1M each at this time, and that's pre-dilution which would be significant. So, sadly, I think it's expensive yet also interesting. But at least dilution with cash. They haven't been getting a return on their investments yet, so that cash may be squandered. We shall see.

BTBD also has issues, and that's already on the Nasdaq. So, I have no idea what concept they have in mind. I don't know if you can rule out another brand coming in as a reverse-merger, thereby getting 6 new stores it can convert. That gets convoluted and just pure speculation IFF it can't be ruled out. You also need to meet certain revenue requirements from the past year or so to be on the Nasdaq, which they fail that requirement too. To my understanding anyway. Which makes me wonder if they intend to bring another brand with X units into the fold as well somehow. I just don't know. I'm not a shareholder, but curious to see what unfolds.

Of course, whatever BTBD does to shareholders here, they do to themselves. Unless they will be one of the outside investors. Then they'd be diluted less than shareholders here. I just don't know. BTBD isn't growing any of its own brands yet. They've only bought some stores. They also made an investment in Noble Roman's (NROM), another penny stock on the OTC. I do own 130,000 shares of NROM. That chain struggles too. So, the mgmt.'s ability to grow brands hasn't been proved yet. Lots of unknowns. But it is interesting. I'm very curious to see what the final verdict is. BTBD seems to like to grow inorganically from what I can tell, but can't seem to grow profits. Yet... They don't bring investor confidence to the table, sad to say. But I do like the way they shake things up. And in NROM's case, the way they are harassing my mgmt. over there for not performing.

[traderjer]

Yeas! Positioning the new entity for NASDAQ.

[traderjer]

If there was ever an opportunity to be in the restaurant business, here it is. $5 million investment in 6 restaurants with liquor licenses, plus a million cash, selling at 1.63 million market cap, with active management who owns 40%.

[ErnieBilco]

My read is that Bagger Dave's is going to disappear as a failed business model. The owners are going to sacrifice Dave's to get their other brand onto the Nasdaq with the Reverse Split. Remember that Dave's came off of the Nasdaq when Diversified dropped to pinks as Bagger Dave's. It was their way to try and save face when they knew full well that the Bagger Dave's concept was garbage from the get go. I owned it wayyyy back when and sold in the $3 range after reading diners reviews of the crap they were peddling to diners.

I'd be a buyer at .001 but no higher than .0015

[tigerpac]

The idea of proposing a reverse split to current shareholders which seems odd if they only have 27 mil OS.

However if they close down all their restaurants, the cash stops coming in and if they need to borrow money to raise funds to create new concept perhaps some of that may be repaid in form of convertible notes.

[Fedel]

There has been no news from the company for 7 years! And here they come, and they are very good! Entering the Nasdaq is a good idea!

https://www.otcmarkets.com/stock/BDVB/news/Bagger-Daves-to-Pursue-Strategic-Alternatives?id=428463

[Rave11]

Very interesting. Thanks for the heads up, Fidel. I have no shares in either one yet. But I am in NROM, where BT Brands bought more of that company's shares. And issued a PR if you do a google seearch of BT Brands and Noble Roman's. Looks like they are going to be a thorn in the side of the BOD over there. And I welcome them and hope they wrestle their way onto the board there or somethign else.

What's your thoughts on BT's mgmt? And is your proposal of the shares here being converted to BT's shares in a PR or a filing somewhere? I'm pretty ignorant of what's going on here. Would love any light and thoughts you want to share.

[Fedel]

See where BTBD shares are rising. I think they will soon merge all the acquired assets, including BDVB, since they have 11 million shares of BDVB. Shareholders will receive BTBD shares. Very soon!

[Fedel]

See where BTBD shares are rising. I think they will soon merge all the acquired assets, including BDVB, since they have 11 million shares of BDVB. Shareholders will receive BTBD shares. Very soon!

[Rave11]

Very interesting company. Micro cap. I was brought to your attention by this surprise filing yesterday on my micro cap company NROM:

https://seekingalpha.com/filing/6925306

BT Brands has now been buying my company and may be seeking the same type of control. I would love for them to replace our BOD which is a bad case of nepotism. They've been at the helm since the early 70s and we are still market cap not much higher than yours.

I like the value of BT Brands and your company, as well as NROM. I think all 3 are looking like good value. Maybe all 3 will merge into BT eventually. Some highlights on the filing above:
_______________________________________________
Some excerpts:

1. Item 4. Purpose of Transaction
Mr. Copperud has been involved in the restaurant industry for more than 15 years as an executive of BTB. Mr. Copperud began acquiring and selling his shares of Common Stock for investment purposes believing that the Common Stock represented an investment opportunity. In July 2022, Mr. Copperud discontinued effecting transactions in the Common Stock for his personal account and, in his capacity as an executive officer of BTB, advised BTB to start acquiring Common Stock for the same reason.

2. The Reporting Persons have previously engaged in a discussions with a member of the Board of the Issuer regarding possible financing alternatives
available to the Issuer, including a discussion by the Reporting Persons (and certain of their affiliates) as to possible approaches to refinance on better terms the
Issuer’s $8.5 million senior secured promissory note that bears interest at the rate estimated to be approximately 18% per annum requiring the Issuer to make
monthly payments of $33,000 beginning in February 2023. Nothing discussed by the Reporting Persons constitutes a current or present plan or proposal of the
Reporting Persons (or any of their affiliates) with respect to the Issuer.
___________________________________________________

May I ask y'all's thoughts on the former mgmt. and now your new BOD? I'd appreciate the good, bad, and ugly. Hold nothing back please.

Your units are priced at $500,000 each. That seems a steal. Both you and BT Brands have a strong current ratio. Good cash on the books relative to size. Sleepers for now, but BT Brands seems like they've been aggressive with growth this year after a private placement. They haven't been public very long. I'm interested...

[Fedel]

Excellent! I was also able to take some. I will continue to look to buy at these levels 0.11-0.12

[traderjer]

Bought more at .1167.

[Fedel]

Investors want to buy at $0.13, but there are no sellers. 44% of the shares from the new owners. The rest belong to investors who entered the market at higher prices (30-50 cents per share). Therefore, there will be little sales at these levels. New shareholders did not come for 10-20% profit, they came for a long-term game and big profits. I think we can see a price of 0.30-0.50$ soon. I will try to buy everything below $0.15.

[traderjer]

I concur! 11.4 cents is the starting point.

[Fedel]

Wow! A major shareholder has bought all the shares that belong to the creator and the directors! More than 11 million shares. Now BDVB is in the hands of a strong management team! They will raise the level of restaurants and increase the value of the company. I would estimate 6 restaurants at 6-10 million dollars. So, the growth of stocks is not far off and will come in the near future. The starting point is $0.114.

[Fedel]

Profit of 5 cents for 2021, that's great! The company becomes profitable! Now she looks good for ransom!

[traderjer]

Added this week under a dime!!

[traderjer]

Going Concern, accounting note, was dropped in the Q3 report!
It was note (12) for 6 previous quarters.
We are a Going Concern!
We keep adding shares.

[ErnieBilco]

It's beyond time for Ansley to put out a PR detailing the state of the restaurants and whether the "we'll do it too" pizza concept is adding value because it sure as hell ain't reflecting in the share price.

This has always been Ansley's downfall, he never promotes his companies and that is plain foolish. One well worded PR could kick this stock in da azz and get it moving again but he would rather let is rot at current levels, makes no sense.

[traderjer]

The new menu and hot oil pizza are now available at 2 MI locations. Cascade and Birch Run. Still accumulating.

[traderjer]

Added shares, averaged up a bit.

[Fedel]

Updated website. Expanding the menu, buying 5,000,000 CEO shares . Isn't this like preparing to sell a business? The company looks delicious, even with 6 restaurants.

[traderjer]

Me neither, still accumulating, still undervalued.

[ErnieBilco]

I'm a seller but not down here.

[traderjer]

Today’s action is likely to bring out sellers. Maybe an opportunity for further accumulation.

[ErnieBilco]

I only see pizza in a single MI location

[traderjer]

Agree. Rare setup here.

[Fedel]

They updated the site. And also added pizza to the menu. They also made a profit , which is a good start. The CEO invested his funds in exchange for shares. This is a good time to start buying.

[traderjer]

Bagger Dave’s. Reopening reimagined. Hot oil tavern pizza.
Lots of cash. CEO is focused. Tiny float. Delicious.

[Philosophical Trader]

Burgers! #nomorecovid BDVB

[MikeyInTheD]

I drove by a location that was actually still open and looked fairly busy this weekend in Michigan. I assumed they were all closed. Could be value left here if someone wanted to expand the regional footprint. Maybe one of the larger players would want to expand into Bugers - Darden maybe?

[ErnieBilco]

Q2 - What a massacre, but was expected since its Michigan

[traderjer]

Take it private now for a song, like 10-12 cents. Opportunity of a lifetime for CEO Ansley.

[ErnieBilco]

Annual report out today.

https://backend.otcmarkets.com/otcapi/company/financial-report/242374/content

[ErnieBilco]

Looking lower as all restaurants are getting killed by the no dining rules. Michigan is due to be hit hard by the virus as are most DNC enclaves. I think it is God's payback.

[traderjer]

Ouch. Need to hear something good from CEO Ansley.

[traderjer]

Buying!

[traderjer]

SAUC deal closed. Expect to hear something about future of BDVB soon, as well as quarterly earnings and 2019 annual report.

[traderjer]

Merger arbitrageurs are involved in SAUC so this indicates that deal should be closing soon and they can collect their 50-150 basis points and BDVB gets Mr. Ansley back full time.

[traderjer]

Continuing to accumulate BDVB shares while waiting on the SAUC deal to close. Then CEO Ansley can address BDVB with last quarter’s results and future plans. That may bring greater liquidity and comments on this board.

[ErnieBilco]

It's always been a very silent board. I like the long term potential once Ainsley starts a buildout of whatever Bagger Dave will wind up being.

[MikeyInTheD]

Where did the interest in this stock go the past couple weeks? Board has been as silent as the company is with releasing news.

[MikeyInTheD]

Tempted to sell after a 46% gain after holding this just a few days. Not often you catch such a nice gain on light volume with new real news outside of maybe a stock in the trips. I’m thinking we will see a couple days of strong volume and this will be off to the races. Waiting until .12 to trim - there is just too much room to run still.

[MikeyInTheD]

Not many shares available. Little reason to sell with potential for positive news. People will continue to pay up for shares.

[MikeyInTheD]

I could see a buyout offer of .40 if they were looking to go private. But with the low float I could see them doing a significant issuance to raise cash and make a transformative transaction for revenue while remaining public. If this remains public they will need to uplist. All signs point to buy now and trim on the way up to .35 to lock in some gains. A big volume day coming in the next week that will drive this to much higher levels.

[Fedel]

This is starting to gain momentum. I'm not sure that it will grow quickly, but I'm sure it will rise high! Even if it takes 1-2 years, but this company and the share price can give growth of 400-500% or more from these levels. But what if this company is bought back? It will be interesting!

[traderjer]

Yes and that’s probably fair considering cash on hand last quarterly and what it would take to get 8 restaurants going again. I would go for that as an immediate buyout but would really be more interested in being a shareholder longer term.